As the new year gets underway, AAA recommends consumers check their insurance coverage.Video above: Check the box on state tax return to get health insuranceWith life changes throughout the year — job shifts, moves, home renovations, new drivers in the household — AAA advises checking to ensure policies still match current needs.”The start of a new year is the perfect moment to take a fresh look at your insurance. A lot can change in a year, and your policies should change right along with your life,” Dan Scroggins, vice president of Personal Lines Insurance, AAA, said in a statement. “No one wants to think about worst-case scenarios, but taking an hour to review your insurance at the start of the year can make a huge difference. It helps ensure you’re protected and that you’re not overpaying for coverage you don’t need.”From car insurance to pet insurance, AAA offers the following tips to consider.Auto Insurance: Adjust for new driving habitsAAA recommends reassessing how much you drive. With many people working from home or entering retirement, changes in mileage may qualify them for lower rates. Households with students leaving for college or teens gaining driving privileges should also update their policies.Drivers with older vehicles may want to review whether collision or comprehensive coverage is still cost effective.AAA also encourages taking a defensive-driving course, which can offer both safety benefits and potential premium savings.Home and Renters Insurance: Update inventories and renovation detailsHomeowners and renters are urged to update their home inventories — either by listing valuables or recording a simple smartphone walkthrough, especially after major purchases or home upgrades.Renovations — such as finished basements or updated bathrooms — can change the value of a home and the coverage needed. AAA reminds consumers that insurance is based on the cost to rebuild, not the home’s market value.Life Insurance: Healthy habits can save moneyMaintaining a healthy lifestyle and seeing a doctor regularly are not only good for long-term wellness, but they may also help lower life insurance rates. Because premiums are based partly on age and overall health, younger and healthier applicants often receive better options.AAA advises reviewing beneficiaries annually and ensuring important documents are stored securely and shared with a trusted contact.Mind the Gaps: Consider additional coverageA standard homeowner’s policy leaves several costly gaps in coverage, including water backup, service-line failures and mold remediation — issues that can lead to major unexpected expenses. Adding the appropriate endorsements ensures homeowners are protected from these common but often overlooked risks.Flood insurance, which is not included in standard homeowner’s policies, may be essential for people living near water or in areas prone to heavy rainfall, even if not in a designated high-risk flood zone.Umbrella insurance, which is extended liability coverage beyond home and auto policies, can also offer added financial protection at an affordable cost.Travel and Pet Insurance: Protect what you loveFor frequent travelers, travel insurance can provide reimbursement for cancellations and coverage for medical emergencies or evacuations during trips.Pet owners may also benefit from pet insurance, which helps offset the cost of veterinary care in case of illness or injury.
As the new year gets underway, AAA recommends consumers check their insurance coverage.
Video above: Check the box on state tax return to get health insurance
With life changes throughout the year — job shifts, moves, home renovations, new drivers in the household — AAA advises checking to ensure policies still match current needs.
“The start of a new year is the perfect moment to take a fresh look at your insurance. A lot can change in a year, and your policies should change right along with your life,” Dan Scroggins, vice president of Personal Lines Insurance, AAA, said in a statement. “No one wants to think about worst-case scenarios, but taking an hour to review your insurance at the start of the year can make a huge difference. It helps ensure you’re protected and that you’re not overpaying for coverage you don’t need.”
From car insurance to pet insurance, AAA offers the following tips to consider.
Auto Insurance: Adjust for new driving habits
AAA recommends reassessing how much you drive. With many people working from home or entering retirement, changes in mileage may qualify them for lower rates. Households with students leaving for college or teens gaining driving privileges should also update their policies.
Drivers with older vehicles may want to review whether collision or comprehensive coverage is still cost effective.
AAA also encourages taking a defensive-driving course, which can offer both safety benefits and potential premium savings.
Home and Renters Insurance: Update inventories and renovation details
Homeowners and renters are urged to update their home inventories — either by listing valuables or recording a simple smartphone walkthrough, especially after major purchases or home upgrades.
Renovations — such as finished basements or updated bathrooms — can change the value of a home and the coverage needed. AAA reminds consumers that insurance is based on the cost to rebuild, not the home’s market value.
Life Insurance: Healthy habits can save money
Maintaining a healthy lifestyle and seeing a doctor regularly are not only good for long-term wellness, but they may also help lower life insurance rates. Because premiums are based partly on age and overall health, younger and healthier applicants often receive better options.
AAA advises reviewing beneficiaries annually and ensuring important documents are stored securely and shared with a trusted contact.
Mind the Gaps: Consider additional coverage
A standard homeowner’s policy leaves several costly gaps in coverage, including water backup, service-line failures and mold remediation — issues that can lead to major unexpected expenses. Adding the appropriate endorsements ensures homeowners are protected from these common but often overlooked risks.
Flood insurance, which is not included in standard homeowner’s policies, may be essential for people living near water or in areas prone to heavy rainfall, even if not in a designated high-risk flood zone.
Umbrella insurance, which is extended liability coverage beyond home and auto policies, can also offer added financial protection at an affordable cost.
Travel and Pet Insurance: Protect what you love
For frequent travelers, travel insurance can provide reimbursement for cancellations and coverage for medical emergencies or evacuations during trips.
Pet owners may also benefit from pet insurance, which helps offset the cost of veterinary care in case of illness or injury.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.